In addition, it seems likely that people who manually underwrite loans look negatively on having too many cards open at once. This is mostly anecdotal but, if you're going after one of these loans, it may be wise to close down some cards.
5. When You Can't Stop Spending
No matter how much it hurts your credit, you should shut down credit card accounts if having them open is a spending temptation that you can't resist. If freezing or cutting up your cards doesn't work for you, and there isn't another way to stop yourself from building up more and more debt, then cancelling the cards makes sense.
This is a last-ditch scenario, but I've known more than one person who faced it. Desperate times call for desperate measures, and sometimes it's better to take the credit score hit rather than continue out-of-control spending.
Have you ever cancelled a credit card? What made it worth the hit to your credit score?
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